The Beta Corporation has an optimal debt ratio of 40 percent. Its cost of equity capital is 11 percent and its before-tax borrowing rate is 8 percent. Given a marginal tax rate of 35 percent.

a. Calculate the weighted-average cost of capital. (Do not round intermediate calculations. Round your answer as a percent rounded to 2 decimal places.)

b. Calculate the cost of equity for an equivalent all-equity financed firm. (Do not round intermediate calculations. Round your answer as a percent rounded to 2 decimal places.)